Toyota, Business Development bring deals; Fannie Mae sets talk; credit spreads improve

By Aleesia Forni and Cristal Cody

Virginia Beach, Aug. 26 – Toyota Motor Credit Corp. and Business Development Corp. of America priced new bond deals on Wednesday as the market’s tone turned positive and a rally in equities ended six straight days of stock losses.

Also adding to the better tone, the Federal Reserve’s William Dudley said that the case for a rate hike in September looks “less compelling” in light of market volatility and events happening outside of the United States.

In primary happenings, Toyota Motor Credit sold $750 million of 30-year bonds, while Business Development Corp. sold a downsized $100 million offering in the first new issues priced in the investment-grade bond market this week.

Fannie Mae was also in the market on Wednesday, setting talk for a planned three-year issue of Benchmark Notes.

Investment-grade credit spreads recovered some ground over Wednesday’s session.

The Markit CDX North American Investment Grade index firmed 4 basis points to a spread of 87 bps.

Bonds were seen mixed in trading earlier in the day, while bank and financial paper was mostly improved.

Toyota new issue

Toyota Motor Credit entered Wednesday’s primary to price $750 million of 4.25% medium-term notes, series B, due 2045 at par, according to an FWP filed with the Securities and Exchange Commission.

MasterLink Securities Corp. and Mega International Commercial Bank Co. Ltd. were the bookrunners.

Proceeds will be used for general corporate purposes.

Application will be made to the Taipei Exchange for the listing of the notes.

The Torrance, Calif.-based funding arm of auto manufacturer Toyota plans to use the proceeds for general corporate purposes.

Business Development prices

Business Development priced a $100 million offering of 6% senior notes (Kroll: BBB) due Sept. 1, 2020, according to a company press release.

The deal’s size was originally set at $150 million.

Keefe, Bruyette & Woods and UBS Securities LLC are the bookrunners.

Proceeds will be used to make investments in portfolio companies in accordance with investment objectives and for general corporate purposes.

New York-based Business Development was established to provide capital primarily in the form of senior secured loans to middle-market enterprises. It invests in both the debt and equity of private middle-market companies.

Fannie Mae sets talk

Also on Wednesday, Fannie Mae set price talk for a planned offering of Benchmark Notes due Oct. 19, 2018 in the area of Treasuries plus 17 bps, according to a market source and a company press release.

The issue is expected to price on Thursday.

The settlement date is Sept. 1.

Barclays, Deutsche Bank Securities Inc. and Nomura Securities International, Inc. are the joint lead managers. The co-managers include Great Pacific Securities, J.P. Morgan & Co., Loop Capital Markets, Multi-Bank Securities Inc. and TD Securities USA.

The government-backed mortgage lender is based in Washington, D.C.

Barclays notes firm

Barclays plc’s 5.25% notes due 2045 were seen earlier in the session about 4 bps tighter at 246 bps offered, according to a market source.

Barclays sold $1.5 billion of the bonds (Baa3/BBB/A) on Aug. 10 at a spread of Treasuries plus 235 bps.

The financial services company is based in London.

JPMorgan paper tightens

JPMorgan Chase & Co.’s 3.9% notes due 2025 were quoted earlier in the session 5 bps tighter at 159 bps offered, a market source said.

JPMorgan Chase sold $2.5 billion of the notes (A3/A/A+) on July 14 at 155 bps over Treasuries.

The financial services company is based in New York City.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.